Slide 1: First Quarter 2020 Results Presentation
First Quarter 2020 Results Presentation May 27, 2020 TSX: NPK OTCQB: AMHPF Improving your health and the planet’s health
Slide 2: Disclaimer
Disclaimer If you are risk averse don’t buy our stock. Don’t rely on anything on this presentation. This presentation contains certain forward-looking information, which includes but is not limited to, statements with respect to Verde AgriTech Plc’s (the Company’s) strategy, the commercial productio
Slide 3: Agenda
Agenda • Financial Highlights • COVID-19 Business Response • Development and Exploration • Q&A Presented by Cristiano Veloso (Founder, President and CEO) & Felipe Paolucci (CFO). * All figures are in Canadian dollars, unless otherwise expressed. Exchange rate: 1.00 CAD = 3.31 BRL Excavator in the mi
Slide 4: Financial Highlights
Financial Highlights AGRITECH
Slide 5: Q1 2020 Consolidated Results
Q1 2020 Consolidated Results Allamounts All amounts in$’000 in CAD CAD $’000 Q1 2020Q1 2019 Q1 2020 Q1Variance 2019 Tonnes sold Revenue 510 10,170 154 1,093 231% Revenuecosts Production per tonne sold $ (331) 50 (49) 141 (576%) Production Gross Profit cost per tonne sold $ 178 (33) 105 (45)70% Gross
Slide 6: Q1 2020 Consolidated Results
Q1 2020 Consolidated Results All amounts in CAD $’000 Q1 2020 Q1 2019 Tonnes sold 10,170 1,093 Revenue per tonne sold $ 50 141 Production cost per tonne sold $ (33) (45) Gross Profit per tonne sold $ 18 97 Gross Margin 35% 68% Revenue 510 154 Production costs (331) (49) Gross Profit 178 105 Gross Ma
Slide 7: Q1 2020 Consolidated Results
Q1 2020 Consolidated Results TONNES SOLD REVENUE PER TONNE Export Domestic -65% +830% 141 50 Q1-2019 Q1-2020 Q1-2019 Q1-2020 PRODUCTION COST PER TONNE -27% Sales Volume (t) Q1 2019 % of Total Q1 2020 % of Total Export 148 14% 331 3% 45 Domestic 945 86% 9839 97% 33 Total 1,093 - 10,170 - Q1-2019 Q1-2
Slide 8: Selling & General Administrative Expenses
Selling & General Administrative Expenses CAD $’000 Q1 2020 Q1 2019 Sales and marketing expenses (260) (115) General administrative expenses (219) (241) Distribution expenses (157) (25) Legal, professional, consultancy and audit costs (169) (162) IT/Software expenses (22) (5) Taxes and licenses fees
Slide 9: Selling & General Administrative Expenses
Selling & General Administrative Expenses • Sales and marketing expenses increased by 126% due to additional 23 sales and marketing professionals being hired in Brazil during 2019 as full time staff, in order to achieve the Company’s 2020 goals. • Distribution Expenses increased in 2020, because Ver
Slide 10: 2020 Guidance
2020 Guidance Increasing Sales Profile Climate driven agricultural cycle: Most sales expected to take place from June to September. Sales Volume per Quarter (Tonnes) SALES VOLUME (TONNES) 100,000 Year Q1 Q2 Q3 Q4 Full Year 80,000 2018 - - 9,007 20,641 29,648 62,895 1,093 23,600 62,895 32,221 119,809
Slide 11: Liquidity and Cash Flows
Liquidity and Cash Flows • Net cash generated from operating activities improvement of $1,063,000, mainly due to a (356) Operating activities 706 decrease of $663,000 in receivables and an increase of $530,000 in payables, which reflects (162) changes in working capital. Investing activities (718) •
Slide 12: Strategy
Strategy Solid Balance Sheet • Ability to generate significant free cash flow. • Credit facilities totaling R$ 21.8 million approved by financial institutions in Brazil. Average interest rate: 1% per month. • Reduced cash liquidity risk for 2020. Operational Improvement • ISO 9001 and 14001 implemen
Slide 13: Agribusiness in Brazil
Agribusiness in Brazil Brazilian Institute of Geography and Statistics increases forecast of the agricultural harvest in 2020 to a record 247 million tonnes. According to the IBGE, rice, corn and soy are the three main foods of the Brazilian harvest and, together, they represent 92.6% of the product
Slide 14: Brazilian Real Devaluation and Federal Interest Rate
Brazilian Real Devaluation and Federal Interest Rate • From January to April 2020, the Brazilian 5,5 5,32 Real devalued by 23% in relation to US 5,3 5,1 Dollar¹ compared with the same period of 4,9 4,88 2019. 4,7 4,5 4,34 • Brazilian Federal Interest Rate (SELIC 4,3 4,15 Rate) decreased from 6,5% to
Slide 15: COVID-19 Business Response
COVID-19 Business Response AGRITECH
Slide 16: COVID-19 Business Response
COVID-19 Business Response • Fertilizer production falls under the food chain category and as such, the Brazilian government have confirmed there will be no restriction on trade for the Company • 2020 plans moving forward intact • Low risk to the supply chain due to the simplicity of the operations
Slide 17: COVID-19 Business Response
COVID-19 Business Response Measures instituted across the company to help prevent the potential spread of COVID-19: • Training on proper hand hygiene and self-protection • Home office has been implemented for office staff since beginning of March • Mandatory use of Personal Protective Equipment for
Slide 18: Development & Exploration
Development & Exploration AGRITECH
Slide 19: Permits Status – Last 12 Months
Permits Status – Last 12 Months Mine Pit Date Category Status Event 2 March 30, 2020 Environment Applied 2,500,000 tpy Preliminary and Installation License 2 March 26, 2020 Mining Approved 25,000,000 tpy Feasibility Study 3 March 25, 2020 Mining Applied 2,500,000 tpy Mining Concession Application 2
Slide 20: Permits Summary
Permits Summary Verde is fully permitted to produce a total 199,800 tpy and has applications * pending for an additional 2,733,000 tpy. Fully Permitted to Mining (tpy) Environmental (tpy) Mine Pit Produce (tpy) Granted Pending Granted Pending 1 0 233,000 0 0 233,000 2 150,000 150,000 25,000,000 200,
Slide 21: Environmental, Social and Governance
Environmental, Social and Governance • Verde’s production process is sustainable, with no water or chemical consumption and no dams or waste generation. Recovery rate is 100%. • Mined area is mainly composed of degraded pasture, which is being transformed into tropical forest by Verde. • Verde plant
Slide 22: Appendix
APPENDIX AGRITECH
Slide 23: Our Directors
Our Directors Dr. Alysson Paolinelli Cristiano Veloso Alysson Paolinelli holds a degree in Agronomy Cristiano Veloso holds a Business from the Federal University of Lavras (UFLA). Management degree from the He has held positions such as the Brazilian Management Training Technical School of Minister
Slide 24: Our Directors
Our Directors Getúlio Lamartine Paulo Sergio R. Machado Getúlio Lamartine holds a degree in Mr. Machado holds a degree in Economics from the Federal Mining Engineering and Geology University of Minas Gerais (UFMG). from the Federal University of He is a senior economist with over Minas Gerais (UFMG)
Slide 25: Supergreensand® vs. Conventional Potash
Supergreensand® vs. Conventional Potash Super Greensand® Conventional (KCl) Year of Launch 2017 1861 K, Mg, Mn, Fe, Si, Co and traces of 60 Nutrients: other minerals including all plant K and Cl essential macro and micro nutrients Plant Nutrients concentration 77% 60% Salinity 0.17% 116% Product's l
Slide 26: Economic-Financial Analysis of the Project
Economic-Financial Analysis of the Project Year Item Description Unit 9 to 11 12 to 18 19 to 25 26 to 28 29 to 31 32 to 35 -1 1 2 3 4 5 6 7 8 36 (average) (average) (average) (average) (average) (average) 1 Production 1.1 Final Product (dry basis) kt 609 611 5,032 5,007 5,034 5,010 25,021 24,995 25,
Slide 27: investor.verde.ag
investor.verde.ag | TSX: NPK | OTCQB: AMHPF